Top 150+ Solved Income Tax Law and Practices MCQ Questions Answer
Q. Income tax is collected on all types ofincome except .
a. Agricultural Income
b. Industrial Income
c. Capital Gain
d. Household Property
Q. The Income Tax Act came into force from .
a. 1st March 1971
b. 1st April 1971
c. 1st March 1961
d. 1st April 1961
Q. The Income Tax Act came into force all over India except .
a. Andaman & Nicobar
b. Maldives
c. Jammu & Kashmir
d. None of the above
Q. As per Income Tax Act, 1961, income tax is charged on the income of at a rate which are prescribed by the Finance Act of relevant assessment year.
a. Current year
b. One year before previous year
c. Previous year
d. None of the above
Q. The tax payer liability is determined with reference to his or her .
a. Financial Status
b. Residential Status
c. All of the above
d. None of the above
Q. As per the definition of Income, the income includes the following .
a. Profits and gains
b. Dividend declared
c. Voluntary contribution received by a trust created
d. All of the above
Q. The period of 12 months commencing on the first day of April every year and ending on 31stMarch is called as .
a. Previous Year
b. Assessment year
c. Accounting Year
d. Financial Year
Q. Previous year means the financial year immediately preceding the .
a. Accounting Year
b. Assessment Year
c. All of the above
d. None of the above
Q. Agricultural income is completely exempted for assessment year .
a. 1974-75
b. 1985-86
c. 1975-76
d. 1978-79
Q. The income from foreign companies by providing the services in project connected with security of India is _________ from tax liability.
a. 50% exempted
b. 20% exempted
c. 100% exempted
d. 55% exempted
Q. An individual is said to be resident in India if .
a. It is in India in the previous year for a period of 182 days or more
b. It is in India for period of 60 days or more during the previous and 365 days or more during the four years immediately proceeding previous year
c. All of the above
d. None of the above
Q. The HUF is said to be resident in India if .
a. The control and management of its affairs is wholly or partly situated in India
b. The control and management of its affairs is partially situated out of India
c. The control and management of its affairs is wholly or partly in out of India
d. None of the above
Q. The awards and rewards are exempted from Income Tax if .
a. Payment is in cash
b. Payment is in kind
c. Payment is in cash or in kind
d. None of the above
Q. Income received in India whether occurred in India or outside India, the tax incidence in caseof resident is .
a. Taxable as per slabs
b. Exempted from tax
c. Partly exempted
d. None of the above
Q. Income received in India whether occurred in India or outside India, the tax incidence in case of resident but not ordinarily resident is .
a. Taxable as per slabs
b. Exempted from tax
c. Partly exempted
d. none